THE IMPACT OF BOARD MEMBERS’ EDUCATIONAL LEVEL ON THE PROSPECTS OF SUCCESSFUL DEVELOPMENT OF SMALL BUSINESS ENTREPRENEURSHIP
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Published:
Nov 21, 2025
Abstract
This article examines the influence of the educational level of board members on the success of small business development. Based on the analysis of theoretical approaches and empirical data from EU countries and Latvia, the study reveals how the education of executives affects strategic planning, innovation activity, and business sustainability. The findings highlight the necessity of enhancing the educational potential of managerial staff to ensure the competitiveness of small enterprises.
How to Cite
Sventitskaya, E., & Reshina, G. (2025). THE IMPACT OF BOARD MEMBERS’ EDUCATIONAL LEVEL ON THE PROSPECTS OF SUCCESSFUL DEVELOPMENT OF SMALL BUSINESS ENTREPRENEURSHIP. Baltic Journal of Legal and Social Sciences, 169-176. https://doi.org/10.30525/2592-8813-2025-spec-13
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Keywords
small business, education level, management, human capital, innovation, competitiveness, sustainability
References
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28. Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341–358.
29. Vilks, A. (2023). Education and competitiveness of Latvian SMEs. Baltic Journal of Economic Studies, 9(2), 45–53.
30. Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources and SME performance. Strategic Management Journal, 24(13), 1307–1314.
2. Bužavaitė, M., & Korsakienė, R. (2022). Does board usage of knowledge and skills affect internationalization performance of SMEs? Entrepreneurship and Sustainability Issues, 9(4), 74–87.
3. Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 9(2), 193–206.
4. Lumenta, A., Tulung, J., & Tumewu, F. (2025). Impact of board education level and size on firm financial performance. International Journal of Business Research and Management Studies, 12(1), 55–68.
5. Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective. Harper & Row.
6. Rashid, A., & Saeed, M. (2023). Board composition, education level, and innovation capacity in SMEs: Evidence from emerging markets. Journal of Small Business Management, 61(3), 421–439.
7. Zakaria, Z., Abas, Z., & Karim, M. (2021). The effect of directors’ education level on firm performance: Evidence from Malaysian SMEs. Asian Journal of Business and Accounting, 14(2), 123–142.
8. Zehir, C., Can, E., & Karaboga, T. (2015). Linking entrepreneurial orientation to firm performance: The role of education and leadership. Procedia – Social and Behavioral Sciences, 210, 358–367.
9. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
10. Becker, G. S. (1964). Human Capital. University of Chicago Press.
11. Central Statistical Bureau of Latvia. (2024). Economic indicators of small and medium enterprises in Latvia. Riga, Latvia: CSB.
12. De Grauwe, P. (2022). The role of education in economic resilience. European Economic Review, 141, 104–119.
13. Estonian Business School (EBS). (2021–2023). Entrepreneurial impact reports. Tallinn, Estonia.
14. European Commission. (2021). SME Strategy for a Sustainable and Digital Europe. Brussels: European Commission.
15. European Commission. (2022). Annual Report on European SMEs 2021/2022. Brussels: European Commission.
16. European Commission. (2023). Annual Report on European SMEs 2022/2023. Brussels: European Commission.
17. FICIL & LDDK. (2024). National strategy for human capital development 2024–2027. Riga, Latvia.
18. GEM Report. (2023). Global Entrepreneurship Monitor.
19. Gonzalez Varona, R., et al. (2024). Organizational competencies for digital transformation in SMEs.
20. ISM University. (2021–2023). Research reports. Vilnius, Lithuania.
21. Kaščekovs, A. (2020). Education and financial performance of SMEs in Latvia. Economics and Business, Riga Technical University.
22. Lundberg, A. (2021). Leadership education and innovation in SMEs. Scandinavian Journal of Management, 37(3), 101–115.
23. LV PEAK Think Tank. (2024/25). Latvia’s productivity report 2024. Riga, Latvia.
24. Navickas, V., et al. (2025). Key HRDM factors enhancing SMEs’ performance.
25. Schwab, K. (2022). The future of SMEs in a globalized economy. Geneva: World Economic Forum.
26. Sproģe, L., Lāce, J., Jekabsone, I., & Skribāne, I. (2024). Possibilities for development of human capital efficiency assessment monitoring system in Latvia.
27. Ščeulovs, D., & Gaile-Sarkane, E. (2016). Entrepreneurial education impact on the development of SMEs in Latvia. Economics and Business, 28(1), 74–81.
28. Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341–358.
29. Vilks, A. (2023). Education and competitiveness of Latvian SMEs. Baltic Journal of Economic Studies, 9(2), 45–53.
30. Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources and SME performance. Strategic Management Journal, 24(13), 1307–1314.